Key Results in the Reporting Period

RUB mn, unless otherwise stated

EBITDA is shown less net provision for impairment of financial investments in deposits. EBITDA = Profit before tax + Depreciation of fixed, intangible, and right-of-use assets + Interest payable + Net accrual/(reversal) of impairment loss on fixed assets and right-of-use assets - Net provision for impairment of financial investments in deposits.

Installed capacity does not include third-party equipment accepted for operational maintenance under service contracts.

Connected capacity is shown net of connected power generation facilities.

Net supply is the amount of electricity distribution services provided.

“The trends of the first half of the year remained the same according to the Company’s performance for 9 months of 2024. The growth of revenue from core operations, with the cost remaining within the target level, and money market factors were the major contributors to the improvement of financial results.” 

- Aleksandr Gridin

Deputy CEO

for Economics and Finance, Rosseti Lenenergo

Notes to Operating Results

An increase in net supply for 9M 2024 versus 9M 2023 by 1,283 mn kWh (+5.5%) was mainly due to the influence of weather factors and an increase in power consumption by industrial enterprises. 

In 9M 2024, power losses increased by 232 mn kWh (+8.6%) YOY due to the growth of load losses.

Notes to Financial Results

Revenue of Rosseti Lenenergo, PJSC for 9M 2024 amounted to RUB 88,349 mn, up by RUB 10,574 mn (+13.6%) YOY, including: 

• Electricity distribution revenue amounted to RUB 77,822 mn, up by RUB 6,736 mn (+9.5%) YOY, due to the growth in power consumption.

• Grid connection revenue totaled RUB 8,718 mn, up by RUB 3,169 mn YOY, as a result of fulfillment of obligations for grid connection of applicants with connected capacity over 670 kW, in accordance with contract terms.

• Other revenue for 9M 2024 amounted to RUB 1, 809 mn, up by RUB 669 mn YOY, driven by an increase in the volume of additional non-tariff-based work and services, including fulfillment of obligations under the contract with RusChemAlliance, LLC.

Cost of work performed and services provided for the reporting period amounted to RUB 59,470 mn, up by RUB 6,060 mn (+11.3%) YOY. Cost growth was mainly due to an increase in depreciation, growth of expenses for purchased electricity to compensate for losses, for services of allied grid companies, for electricity distribution services of Rosseti, PJSC.

Net profit of Rosseti Lenenergo, PJSC for the reporting period totaled RUB 25,974 mn.  The positive change in net profit was primarily driven by higher growth rate of revenue against the growth rate of cost, recovery of previously created provisions as a result of settlement of disputes with counterparties, including through court proceedings.

EBITDA for 9M 2024 amounted to RUB 47,946 mn, up by 26.3% YOY.

Key Balance Sheet Items

RUB mn, unless otherwise stated

ROE is calculated as: (Net profit / Equity) * 100

At September 30, 2024, assets of Rosseti Lenenergo, PJSC amounted to RUB 300,059 mn, up 3.9% YTD, mainly due to the implementation of the approved investment program.

At September 30, 2024, the Company’s net assets totaled RUB 207,960 mn. Due to the growth of net profit, net assets grew by 10.8% versus December 31, 2023.

Return on equity (ROE) of Rosseti Lenenergo was 13.4%, with an increase by 2.3 p.p. versus December 31, 2023 due to higher growth rate of the Company’s net profit against growth rate of equity.

Investment Program

Actual figures for 9M 2024 are based on operational data.

Capital investment for the reporting period totaled RUB 25,697 mn, increasing by 13.6% YOY.

Funding amounted to RUB 32,159 mn, up by 12% YOY. 

Commissioned assets (in monetary terms) amounted to RUB 22,815 mn, which is 22.7% higher YOY.  

The deviation from the figures for 9M 2023 was due to the implementation of measures under grid connection contracts, including with subsidized applicants, and measures to improve the reliability of electricity supply to consumers.